Norway: Aker bp to acquire Lundin Energy’s oil and gas business
The merger will result in a new company focused on the exploration and production of oil on the Norwegian Continental Shelf.
Aker bp has announced its proposed acquisition of the oil and gas business of Lundin Energy, through a statutory merger. The merger will impact the interest of bp, owner of Aker, in the company resulting from the acquisition. This combination would create one of the largest exploration and production companies focused exclusively on the Norwegian Continental Shelf.
"We are now creating the E&P (exploration and production) company of the future which will offer among the lowest CO2 emissions, the lowest cost, high free cash flow and the most attractive growth pipeline in the industry," said Karl Johnny Hersvik, Aker bp CEO, in a press release published by Reuters. According to the news site, Hersvik will remain in his position regardless of the transaction.
“We welcome and support this proposed acquisition, which will strengthen and significantly enhance the long-term future of Aker bp and our continuing relationship with Aker,” said Bernard Looney, bp Chief Executive.
“The combination of Aker bp and Lundin Energy’s Norwegian oil and gas business will create a world-scale independent oil and gas company with a leading position in very high-quality, resilient resources with best-in-class CO2 emissions intensity,” added Looney.
Aker bp is a company focused on exploration, field development and production of oil and gas on the Norwegian continental shelf. The company operates five field centres: Alvheim, Ivar Aasen, Skarv, Ula and Valhall, and is a partner in the Johan Sverdrup licence.
Currently, bp holds a 227.9% interest in Aker bp, but it’s expected to become a 15.9% interest in the combined company after the merger. The closing of the deal depends on regulatory and shareholder approvals and it is expected to be fulfilled by the second quarter of 2022.
